State-owned Punjab Nationwide Financial institution (PNB) on Thursday stated it has obtained the federal government approval to divestment its total stake in UTI Asset Administration Firm Restricted as a part of its non-core asset sale plan to shore up its capital base.
The financial institution, which holds 15.22% stake in UTI AMC, will divestment its total stake within the mutual fund firm in single or a number of tranches for realization of achieve on funding. It is present valuation stands at ₹1,329 crore.
“The Change is hereby knowledgeable that the Financial institution has obtained approval of DIPAM, Ministry of Finance, Authorities of India for divestment of Financial institution’s total/half stake in UTI Asset Administration Firm Restricted in single or a number of tranches topic to compliance of SEBI Laws/different relevant regulatory pointers,” the financial institution stated in a regulatory submitting.
The timeline for making the divestment is but to be finalized, the financial institution stated.
PNB is among the sponsors of India’s oldest mutual fund firm. In addition to PNB, State Financial institution of India, Life Insurance coverage Company of India, Financial institution of Baroda and US-based T Rowe Worth are different sponsors.
In the meantime, the non-public lender’s had reported a 62.8% dip in web revenue to ₹411.3 crore for the July to September quarter. That is in opposition to a web revenue of ₹1,105.2 crore within the year-ago interval.
The financial institution’s web curiosity revenue (NII) grew by 30.2% to ₹8,271 crore within the quarter beneath assessment from ₹6,352.8 crore a yr in the past.
On Thursday, shares of PNB settled at ₹50.80 apiece, up 0.89% on the NSE.
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Supply: Live Mint